8th Pay Commission: It is widely expected that the Centre will implement the recommendations of the next pay commission on revising salaries and pensions of central government employees from January 1, 2026. Typically, there is a gap of around 10 years between two pay commissions, and the 7th Pay Commission’s tenure will complete its 10 years on December 31, 2025.
With the 7th Pay Commission reaching the end of its term, the Centre is likely to establish the 8th Pay Commission soon, which will provide recommendations for updating salaries, allowances and pension benefits for central government employees.
However, it’s important to note that the Modi government has not officially announced the establishment of the 8th Pay Commission, and therefore, no specific implementation date has been set. Typically, it takes around 12-18 months for the commission to formulate its recommendations once established. During this process, the commission considers various factors, including current economic conditions, to propose changes in employee salaries and benefits.
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8th Pay Commission – Key expectation
The central government employees have been urging the Centre to raise the fitment factor from 2.57 to 3.68. Fitment factor is a common multiplication number for calculating salaries and pensions of government employees. For instance, 2.57 was the common fitment factor used for revision of 6th Central Pay Commission Pay to 7th Pay Commission.
The 6th Pay Commission had suggested a fitment factor of 1.86, while the 7th Pay Commission recommended a common fitment benefit of 2.57 for all employees. Based on this fitment factor, the minimum basic pay for central government employees was fixed at Rs 18,000 per month, up from Rs 7,000, which is 2.57 times the basic pay of the 6th Pay Commission. Central government employees have been urging the government to raise the fitment factor from 2.57 to 3.68.
What will be the minimum and maximum basic salaries of government employees?
With the implementation of the 8th Pay Commission and taking into account the expected fitment factor of 3.68, the salary structure for central government employees across 18 pay matrix levels is expected to see significant increases. For example, at Pay Matrix Level 1, the basic salary may rise from Rs 18,000 under the 7th CPC to Rs 21,600 under the 8th CPC. At the highest level, Pay Matrix Level 18, the basic salary is likely to increase from Rs 2,50,000 to Rs 3,00,000.
Allowances and other benefits under 8th Pay Commission
The 8th Pay Commission is expected to introduce changes in different other benefits and allowances such as House Rent Allowance (HRA), Transport Allowance (TA), and Dearness Allowance (DA). These will also be adjusted to reflect changes in inflation and evolving living costs once the 8th Pay Commission is implemented.
However, it is tough to predict the exact increase in income following the 8th Pay Commission implementation. But, based on the several adjustments, significant salary increases can be expected across the 18 pay matrix levels.
What has been the government’s response to this so far?
The Indian government is yet to make a formal announcement regarding the formation of the 8th Pay Commission, despite speculation that it may be implemented in January 2026. In fact, the Finance Secretary clarified last year that the government has no plans yet to set up the 8th Central Pay Commission.
When it is set up, the 8th Pay Commission will potentially benefit around 67.85 lakh pensioners and 48.62 lakh Central Government employees.